Swiss Banker Bonus Cap Proposal Watered Down in Parliament

The Swiss parliament has revised a proposal that would have imposed a cap on bonuses for executives at the country's largest banks, including UBS Group AG. The original plan sought to install a fixed upper limit on compensation, but this has been significantly watered down during the legislative process. The revised proposal now gives more flexibility to individual banks in determining their own bonus structures, rather than imposing a one-size-fits-all approach. This change is seen as a victory for the banking industry, which had lobbied against the stricter limitations on executive pay. The debate highlights the ongoing tensions between efforts to rein in excessive compensation in the financial sector and the industry's desire to maintain competitive pay packages. The final outcome represents a compromise that seeks to balance these competing interests, though some critics argue it does not go far enough in addressing concerns over excessive risk-taking and wealth disparity.